Compared to long-term levels, multifamily rent growth remains moderate overall, yet the market exhibits strength in several areas. Up to July, advertised rentals increased by a modest 0.8% year-over-year, continuing a growth trend through the start of the summer.

The robust economy has sustained demand. In the first half of 2024, the U.S. economy gained 1.3 million jobs, and GDP rose by 2.8% in the second quarter. While there are indications of potential economic slowing, a soft landing appears more likely than a severe recession. Inflation is declining, with the personal consumption expenditures price index rising by only 2.5% in June, and the consumer price index (CPI) growing by 3.0%. This increases the likelihood of quicker-than-anticipated reductions in short-term interest rates. High rates continue to hinder mortgage refinancing and home sales initiated before rate hikes.